labor lawAdivision of labor law center

On January 1, 2008, the state of Massachusetts increased its state minimum wage by 50 cents, going from $7.50 to $8.00 per hour.

This put Massachusetts in the rank of second, tied with California, for the highest state minimum wage. Washington comes in first with a state minimum wage rate of $8.07 per hour.

In all, fourteen states increased the minimum wage with the new year.

This new state minimum wage does not apply to all employees. As long as the worker averages $5.37 per hour in tips, employees who earn tips can be paid as little as $2.63 per hour. Employees in the agricultural industry can receive as little as $1.60 per hour.

The Massachusetts state minimum wage law includes some other exceptions. Employers in this state are not required to pay a premium for weekend, holiday or night time work. The “Blue Laws” are an exception, which require that some retailers pay a premium rate to employees who work on holidays and Sundays.

A premium rate of pay, or overtime, is normally paid to any worker who puts in more than 40 hours during one week. This rate is paid at 1.5 times the normal hourly rate. Several types of employees, however, are excluded from overtime pay by the state minimum wage law. These employees include fishermen, golf caddies, newsboys, apprentices, outside salespersons, and switchboard operators for the phone company, among others.

Seasonal businesses that operate fewer than 120 days per year are also exempt from paying overtime.

Massachusetts excludes a number of industries from paying overtime, too. Hotel, restaurant, hospital, gas station, nursing home and amusement park workers do not qualify for overtime pay. Non-profit summer camp employees and workers are non-profit schools and colleges are exempt from overtime pay.

Many changes will occur in 2008 regarding minimum wage laws. The changes in both federal and state laws will require all Massachusetts companies to update their labor law posters. Companies that need updated information can check out the labor law website at www.laborlawcenter.com.

January 1, 2008 saw an increase in state minimum wage for fourteen states, including Montana, Arizona, Iowa and Delaware and ten others. These raises, however, are just the first of many increases slated for 2008.

The first of these increases will occur on July 1, 2008. Three states will enjoy a substantial raise at this time. Kentucky will add 70 cents to its minimum resulting in a new rate of $6.55. West Virginia will also see a 70 cent bump, from $6.55 to $7.25 per hour. Employees in Pennsylvania, however, will see the biggest boost, a 90 cent jump from $6.25 to $7.15

Five other states will enact less dramatic increases to their minimum wage rates. For example, both Michigan’s and Illinois’s rates will receive a 25 cent bump. The minimum wage in Illinois will increase from $7.50 to $7.75. Michigan’s minimum will be raised from $7.15 to $7.40 per hour.

The July 24, 2008 increase in the federal minimum wage is a result of the Fair Minimum Act of 2007, which President George W. Bush signed into law on May 24, 2006. The Act set up a three step system of increases. The July 24, 2008 bump will be the second step of that system.

Several states, including Texas, Maryland and Oklahoma, tie their state minimum wage increases to when federal minimum wage goes up. When the federal minimum wage goes up on July 24, 2008, the minimum wages in these states will go up, too. Ohio’s minimum wage will increase to $6.55 per hour for workers of companies with gross annual revenue of less than $255,000.

In addition to the states mentioned above, the District of Columbia also ties its minimum wage to the federal minimum. In D. C., however, the law requires the minimum wage rate to be at least $1.00 more per hour than the federal rate. On July 24, 2008, D.C.’s minimum wage will increase to $7.55 per hour.

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